Massive patent reform bill passes House committee

The Patent Reform Act of 2007 may be headed to a vote by the full House of …

The House Committee on the Judiciary passed the landmark Patent Reform Act of 2007 today, marking the first time that patent reform legislation of this scope has managed to emerge from committee. Passed with bipartisan support, the bill would bring about the first major changes to the US patent system in decades.

During the markup session this morning, a manager's amendment was introduced that modified some of the bill's provisions. One change would give more leeway for an inventor who believed his or her invention was misappropriated to challenge a patent while another makes some of the bill's provisions on prior art and derivation proceedings dependent on Europe and Japan making some minor changes to their patent laws.

The other bedrock changes to the US patent system envisioned in the original bill remain, including a shift from a "first to invent" system to the "first to file" system used in other countries. Damage awards for patent infringement would also be capped, while the appeals process would be significantly modified. Instead of filing a lawsuit or a request for reexamination with the US Patent and Trademark Office, those wishing to challenge patents would be able to take advantage of a new, post-grant patent review process.

Applicants would also have to perform a prior art search—not required under current law—and provide any documentation relevant to an invention's patentability to the USPTO as part of a patent application.

The Patent Reform Act of 2007 has received a mixed reception from the business world. Firms that count on patent licensing agreements for a significant proportion of their revenues—like Qualcomm—fear that the bill would undermine the value of their IP portfolios. The tech industry, on the other hand, has supported the bill from its introduction in hopes that its passage would reduce the amount of patent litigation they are faced with.

Rep. Howard Berman (D-CA), one the cosponsors of the House's legislation, praised the Judiciary Committee's vote while noting that there is still work to be done on the bill. "Past attempts at achieving comprehensive patent reform have met with stiff resistance," said Berman in a statement e-mailed to Ars. "However, the time to reform the system is way past due. I hope to take this bill to the full House for a vote before we break for August recess."